GBP/USD advances towards 1.1600 on novel UK Leadership, US ISM Services PMI eyed

GBP/USD is marching towards 1.1600 as Liz Truss's win warrants UK’s political stability.
British energy supplier, Centrica is securing credit to offset collateral demand for volatile energy prices.
Fed’s extreme hawkish stance is responsible for lower consensus for US ISM Services PMI.

Sagar Dua FXStreet

The GBP/USD pair has given an upside break of the consolidation formed in a narrow range of 1.1512-1.1520 in the early Tokyo session. The asset has displayed a sheer upside as a volatility expansion has kicked in after a range breakout. Earlier, the cable witnessed a firmer rebound after hitting a low of 1.1450. Broadly, the asset was declining for the past few weeks amid political instability in the UK economy. Now, the announcement of a leadership change has strengthened the pound bulls.

After fighting for the leadership of the Conservative Party for more than two months, Liz Truss has finally won the elections and has been elected as the next UK Prime Minister. As announced by Liz Truss while presenting her capabilities for contender of UK leadership that she will scale down energy bills for households, pound bulls have started playing the road. Also, a situation of political stability in the UK economy will strengthen sterling.

Meanwhile, the impact of volatile energy prices has spread to energy suppliers. News from Financial Times cited that, Britain's largest energy supplier Centrica Plc is in talks with banks to secure billions of pounds in extra credit to meet soaring collateral demands as the energy market remains volatile.

On the dollar front, the US dollar index (DXY) has surrendered the psychological support of 110.00. The DXY is facing the heat of lower consensus for the US ISM Services PMI data. The economic data will decline to 55.5 from the prior release of 56.7. It seems that the consequences of the extremely hawkish Federal Reserve (Fed) are visible now and the US economic activities are declining. The unavailability of cheap money has forced the corporate to postpone the funds' channelization into afresh investment opportunities and expansion plans.

GBP/USD

Overview
Today last price	1.155
Today Daily Change	0.0040
Today Daily Change %	0.35
Today daily open	1.151

Trends
Daily SMA20	1.1884
Daily SMA50	1.1984
Daily SMA100	1.2233
Daily SMA200	1.2791

Levels
Previous Daily High	1.1589
Previous Daily Low	1.1496
Previous Weekly High	1.1761
Previous Weekly Low	1.1496
Previous Monthly High	1.2294
Previous Monthly Low	1.1599
Daily Fibonacci 38.2%	1.1532
Daily Fibonacci 61.8%	1.1554
Daily Pivot Point S1	1.1474
Daily Pivot Point S2	1.1439
Daily Pivot Point S3	1.1381
Daily Pivot Point R1	1.1567
Daily Pivot Point R2	1.1625
Daily Pivot Point R3	1.166

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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